Bahlil urges Danantara to absorb spare gas capacity from Masela LNG project

Energy and Mineral Resources Minister Bahlil Lahadalia has urged state investment agency Danantara to absorb uncommitted gas supply from the Abadi LNG project in the Masela Block to help secure domestic energy supply and accelerate development of the giant upstream project.

The call came after upstream regulator SKK Migas disclosed that around 250 million standard cubic feet per day (MMSCFD) of gas from the Masela project remains uncommitted and could still be allocated for future domestic demand.

Bahlil said Danantara, together with state-owned energy companies including PT PLN (Persero) and PT Perusahaan Gas Negara Tbk, should act as domestic offtakers for strategic gas projects that have yet to secure export buyers.

“If the gas has not yet been marketed overseas and development is still slow, I have asked Danantara, PLN, PGN and several other domestic companies to buy it so there is certainty for the offtaker and projects can move forward,” Bahlil said during the 50th IPA Convex 2026 in Tangerang.

Read also: INPEX signs preliminary LNG offtake deals for Abadi LNG project

SKK Migas head Djoko Siswanto said the Masela project is expected to produce around 1,200 MMSCFD of gas, with part of the supply intentionally left available to support future domestic needs.

“Masela will produce around 1,200 MMSCFD, and we still have around 250 MMSCFD spare if we later need to support additional development,” Djoko said.

The Abadi LNG project, operated by Inpex Corporation, is designed to produce 9.5 million tonnes per annum (MTPA) of LNG, 150 MMSCFD of pipeline gas and up to 35,000 barrels per day of condensate from the deepwater Masela Block in the Arafura Sea.

The estimated US$21 billion project is one of the country’s largest planned gas developments, with construction targeted to begin in 2026 and production expected to start in late 2029.

Inpex recently signed agreements in principle with several buyers including PT Pupuk Indonesia (Persero), PT PLN Energi Primer Indonesia, PT Perusahaan Gas Negara Tbk, bp and Shell Eastern Trading Pte Ltd as the project moves toward a final investment decision.

Editing by Alexander Ginting